Boston, MA 04/28/2014 (wallstreetpr) – The shares of Applied Micro Circuits Corporation (NASDAQ:AMCC), a chip-manufacturer, were close to 5% higher on Friday after the company reported better earnings per share for the fourth quarter, but missed reporting revenues in line with the set expectations.
Earnings Beat; Revenues Miss
For the reported quarter, the revenue of the company came in at $51.8 million, recording a fall of 8% from that of the previous year’s quarter and 6% from that of the third quarter. At the same time, the company reported net income of $0.01 per share for the quarter, exceeding the break even quarter expectations of the market. The analysts had estimated flat quarter on revenue of $52.3 million. Gross margin improved marginally from 60.5% to 61.7% but was below 62.4% from a year earlier.
Applied Micro Circuits Corporation (NASDAQ:AMCC)’s CEO ParameshGopi noted the progress of its upcoming server computer chip called “X-Gene”. Gopi highlighted that both X-Gene and X-Gene2 are on their production track as per the estimated milestones of the previous quarter. X-Gene is based on the ARM Holdings (ARMH) technology and is aimed to target the server market, currently influenced by Intel’s (INTC) Xeon processors.
Gopi further said that the company has already received orders for X-Gene. Apart from this, the company projects revenue to come in the range of $50 million to $54 million in the current quarter, while gross margin expectations are set at 56-58%. Applied Micro anticipates to the break-even in the current quarter. Overall, the stated projections fall in line with the market consensus of a breakeven quarter and revenue of $52.3 million.
Ratings Reiterated
There were no changes in the ratings of Applied Micro Circuits Corporation (NASDAQ:AMCC), where Evercore’s analyst Michael Lucarelli, reiterated an ‘overweight’ rating on the stock and assigned a price target of $15. At the same time, Raymond James analyst Hans Mosesmann and Roth Capital Partners analyst Krishna Shankar maintained a ‘buy’ rating on the stock, while giving it a target of $17 and $16 respectively.
